A Huawei logo shown at a store in Beijing.
Fred Dufour | AFP | Getty Images
The Chinese technology company Huawei is planning to shut down hundreds of employees in the United States, struggling with a blacklist that Trump manages over national security issues, The Wall Street Journal reported and quoted people who were familiar with the case.
The layoffs are expected to hit Huawei's US development company Futurewei, according to Journal. Futurewei employs 850 people in research laboratories across the United States, including Texas, California and Washington State. Overall, Huawei has about 1
Although the exact number of layoffs was unclear, a person familiar with the matter told that hundreds of people were expected to lose their jobs.
Huawei could not be accessed immediately for comments.
The Trump administration declared a national emergency in May over threats to national security, and the Department of Commerce added Huawei to a blacklist, effectively preventing US firms from doing business with Huawei unless they receive special permission from Commerce.
The black list has hit Huawei hard. CEO and founder Ren Zhengfei said the company expects a $ 30 billion hit over the next couple of years due to US restrictions. Huawei also recently announced that it was scraping a new laptop.
However, President Donald Trump agreed to ease restrictions on Huawei and let US companies do business with it as long as national security is not threatened. This convention came as part of a ceasefire that Trump and Chinese President Xi Jinping at the G-20 in Japan last month achieved to restore trade negotiations and avoid further escalation for now.
White House's financial advisor Larry Kudlow has stated that Trump did not give Huawei a general amnesty. Instead, Commerce will simply give more licenses to US companies wishing to do business with Huawei as long as they are not national security issues.
Read the full story in The Wall Street Journal